Transactional vs promotional message
Chances are that if you were to pick up your phone and scroll through your text messages, you may have probably received a one-time code from your bank, a few marketing text messages from your favorite brands, and a thank-you message from a service provider. These texts come in both transactional and promotional varieties.
But what is the difference between transactional and promotional messages?
What is a transactional SMS?
A transactional SMS is typically an automated message that is usually sent due to customer-initiated activity or in response to an event. Banks are a good example of transactional messaging in action. When customers make purchases or attempt to access their accounts online, they are sent one-time pins (OTP). When a consumer makes a withdrawal or a transfer, they also transmit a balance update. Processes like account activations, booking or order confirmations, account balance notifications, and real-time alerts can all be improved with the help of transactional SMSes.
What is a promotional SMS?
A promotional SMS is more commonly used to drive new or repeat business or a sale. These text messages are by and large used to inform customers of new deals, offers, and discounts or to thank customers for their continued support.
The typical function of a promotional SMS is to increase new or repeat business. These text messages are sent to consumers to inform them of any new promotions, discounts, or offers or just to express gratitude for their ongoing patronage.
Let us have a look at examples of transactional messages and promotional messages.
What is it?
Typically, informational messaging is one-way communication in which a business or organization answers a customer’s request for information or in which a consumer can anticipate receiving a one-time response to an action they have performed.
The first message is often sent by the business and mostly contains useful and helpful information. There is usually an existing relationship between the customer and the company. For example, the business would send, an appointment reminder.
Another example is in the case of sending a one-time password or two-factor authentication (2FA) message. E.g a customer initiates a response, by performing an action when logging into a platform and a one-time password (OTP) is sent to their mobile number.
What is it?
A Promotional message is also one-way messaging, that offers a sales or marketing promotion. Typically this message is followed by a call to action at the end of the communication.
Marketing messages are good examples of promotional messages. The first message is typically sent by the business to an already opted-in customer or contact list. This message often promotes a brand, product, or service.
Example: Marketing messages are typically awareness campaigns for a business or brand. An example is a brand or business with a special or popular item on sale. The brand would then send this promotion out to their opted-in customer base with the details of the offer, along with opt-out instructions.
Now that we can distinguish the difference between promotional and transactional messages, you can start setting up your campaigns. Sign up today and start engaging your customers.